The article implies that this sales boom is a direct result of recent policy decisions. While the source text does not explicitly link the increase to a price cut, the Minister’s statement follows a period of price adjustments, with the context suggesting that a reduction in the price of milk and milk fat (cow ghee) played a crucial role. This strategic pricing has clearly resonated with consumers, demonstrating the elasticity of demand for essential goods within the agribusiness sector.

The positive market response reinforces Aavin’s position as a dominant force in Tamil Nadu’s dairy landscape. As a government-backed cooperative, Aavin has a unique role in balancing consumer interests with producer viability. The sales increase not only boosts the cooperative’s revenue but also validates the government’s approach to making dairy products more affordable, thereby enhancing food security and consumer welfare in a major urban center like Chennai.

For the international dairy community, this case study offers a valuable lesson in dairy economics. It showcases how a major cooperative can effectively use pricing strategies to stimulate the market and strengthen its brand. The success of Aavin’s approach demonstrates that even in a price-sensitive market, strategic adjustments can lead to substantial gains in market share and overall sales volume.